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Mike's Minute: Adrian Orr could be the saviour of us all

Author
Newstalk ZB,
Publish Date
Fri, 1 May 2020, 9:22AM

Mike's Minute: Adrian Orr could be the saviour of us all

Author
Newstalk ZB,
Publish Date
Fri, 1 May 2020, 9:22AM

Adrian Orr is coming into his own. If we were handing out awards for having your act together he would likely be this week's recipient.

LVRs are on their way out. He didn't invent them, but he's overseen them. And getting rid of them is an act of practicality and common sense, in a world at the moment that involves too much self interest and a lot of politics.

The government would have been practical and wise not to hand out the latest minimum wage rise, because those who are currently teetering and may not make it, can't afford it. The government were told that by any number of people, from economists, to those who were faced with a bill they didn’t have the money for. And yet given Labour are owned by the unions and the unions wanted it, so they got it. It was political. The same way upping the benefits was political, not practical.

Practical would have been to shovel $8 billion to save jobs, not $5 billion with $3 billion for the beneficiaries. Practical would been to hold off the Winter Energy Payment to millionaires who didn’t need it. Practical would have been to hold off funding Maori as part of the virus support.

This is why an increasing number now question the government's whole ”we are all in this together” drum beat. Because although that’s true, they're also in it to hoodwink you into believing that everything they do has absolutely nothing to do with you voting for them in September.

So Orr is a blessing and a breath of fresh air. The biggest call, of course, came early with the capital reserves for banks. That was his baby, he wanted it, fought for it, and battled the banks for it.

He wanted twice as much money set aside for a rainy day. The banks argued, and rightly, the more they had to keep aside, the more expensive money would get, the more they'd have to cut back in areas of risk like farming, or first home buyers. It was a stand off, and Orr got his way.

But as a first move from the Reserve Bank he gave that up, and in doing so allowed $47 billion into the economy. That is sort the leadership we need, and should be recognised and applauded.

He is doing what is necessary to get us through this. He could have baulked at it, could have gone another route, could have turning it into his minimum wage, but he didn't. He rolled up the white flag.

And now the LVRs. They were never really that effective, they might have put off the odd investor, and let a first home buyer in, but if you want to make money easier to get, it's an easy call to make. Well, it is for practical people who are good at their job.

I hope in the wash up of all of this, his role and these actions aren't easily forgotten, because he's doing the right thing by us all.            

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